Indian shares bounced back on Friday after steep losses last session, led by tech and automobile stocks.
Federal bonds ended higher on buying stoked by a bigger-than-expected fall in inflation but volumes were low, with many traders attending a debt market conference in Dubai.
The top 30-issue Mumbai share index closed up 0.53 percent at 5,443.44 points as investors picked bargains after steep falls in prices on Thursday but market mood was wary ahead of general elections in April-May, traders said.
The index fell more than two percent to a three-month closing low on Thursday as investors sold shares to tide over a cash shortage caused by funds getting locked up in a slew of public issuance's in recent weeks.
"The market will trade in a range till the elections are over but there will be occasional pull backs," said Ritesh Sheth, investment analyst with ASK Raymond James Securities Ltd.
Sheth said investors were betting on upbeat earnings forecasts from the technology sector for the next fiscal year, which starts in April, on increased signs of stability in billing rates and continued volume growth.
Earnings for the January-March quarter are due from April.
Infosys Technologies Ltd, India's second-biggest software services exporter, gained 5.3 percent to 5,186.75 rupees and Satyam Computer Services Ltd, the fourth-biggest exporter, rose 4.2 percent to 304.80 rupees.
Automobile stocks were driven up on expectations of a boost in quarterly earnings after strong growth in vehicle sales in the last two months.